USDA Rural Development Energy Project Assistance

The USDA Rural Development offers grants and loan guarantees for renewable energy and efficiency projects. Grant awards can be equal to up to 25% of the project costs. Loan guarantees can be up to 75% of the project costs. If both are awarded the total assistance cannot exceed 75% of the project costs. For example, a 20% grant award stipulates a maximum 55% loan guarantee. Eligible projects must be located in rural areas (population of less than 50,000). Agricultural projects and commercial projects qualify. To qualify as a agricultural project, at least 50% of the applicants income must be derived from agriculture related proceeds. To qualify as a commercial project, the business must have fewer than 500 employees and annual sales of less than $1 million.

Reenewable Energy Resources is offering their assistance in the application process. There are two types of applications. Projects with a cost of $200,000 or less qualify for the short form. Projects with a cost greater than $200,000 up to $25 million will use the long form, which requires additional feasibility analysis.